Paul Kupiec on Problems with the Fed’s Balance Sheet and Calls to End Interest on Reserves
Macro Musings with David Beckworth
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Complexities of the Federal Reserve's Balance Sheet
This chapter explores the intricate relationship between the Federal Reserve's balance sheet and the U.S. Treasury, highlighting the nuanced financial implications for taxpayers. It discusses the unconventional accounting practices of the Fed, including management of losses and remittances, while emphasizing potential reforms and the distinct roles of member banks. The conversation raises critical questions about transparency, sustainability, and the broader impacts of interest payments on reserves, revealing significant tensions in current monetary policy.
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